Legal & General Property has signed a deal with Aviva Life & Pensions UK to buy Stevenage leisure park in the UK. The investment volume of £40 mln (EUR 48 mln) reflects a net initial yield of 6.5%.

Situated in the centre of Stevenage, the leisure park provides 18,600 m2 of leisure space across 17 units and is anchored by a 16-screen Cineworld multiplex cinema.

The scheme, which was bought for one of LGP's managed funds, is fully let with an average unexpired lease term exceeding 10 years. Key anchors are a David Lloyd health and fitness centre, and a Hollywood Bowl. The centre also provides 1,320 car parking spaces.

'The leisure sector offers attractive risk-adjusted income streams with a blend of fixed rental increases and reviews to open market rental value,' said Mark Russell, fund manager at LGP. 'It therefore provides an attractive alternative to some of the more traditional investment sectors.'

Montagu Evans acted for LGP and CBRE advised Aviva Life & Pensions UK in the transaction.